How Technology Is Changing Ad Agency Structures

Buyers are intrigued by AI

The automation of ad buying has forced agencies to rethink how they utilize ad tech. Don Vega, principal media trader at Goodway Group, spoke with eMarketer’s Ross Benes about how emerging technologies are leading ad buying firms to reorganize themselves.

eMarketer:

Have you noticed ad agencies having to change their structures due to new technologies?

Don Vega:

Definitely. We are seeing more data scientists and people being hired on the tech side who are able to analyze and manage the data and reporting.

eMarketer:

Are any areas being cut back to compensate for the expansion of tech hires?

Don Vega:

We see less folks on the production side. You do not see a lot of folks doing print production or video production. The production becomes too expensive.

You're going to see more custom creations and less cookie-cutter approaches that [agencies] just send to every client. The client will have their own custom team, custom strategies and custom technology.

eMarketer:

In what ways do you think agencies will continue to adjust themselves?

Don Vega:

You're going to see more custom creations and less cookie-cutter approaches that they just send to every client. The client will have their own custom team, custom strategies and custom technology.

eMarketer:

Which emerging technology will have the biggest effect on ad buyers?

Don Vega:

Artificial intelligence (AI) is probably going to have the biggest effect.

eMarketer:

What is so appealing about AI?

Don Vega:

The machine can actually learn from the campaign and then constantly make little optimizations on an ongoing basis and keep getting better.